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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock Incentive Plans
2014 Equity Incentive Plan
In August 2014, the Company adopted the 2014 Equity Incentive Plan (“2014 Plan”) under which employees, non-employee directors and consultants of the Company may be granted incentive stock options, nonqualified stock options, stock appreciation rights, performance shares, awards of restricted stock and awards of restricted stock units.
As of December 31, 2021, with the introduction of a new stock incentive plan, shares are no longer available for future grants under the 2014 Plan.
2021 Stock Incentive Plan
In September 2021, the Company adopted the 2021 Stock Incentive Plan (“2021 Plan”) under which employees, officers and directors, as well as consultants and advisors to the Company are eligible to be granted awards (incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards). The 2021 Plan initially authorized the issuance of a maximum of 22,399,691 shares of common stock. The number of shares of common stock available for issuance under the 2021 Plan were and will be increased on the first day of each fiscal year beginning with the 2022 fiscal year, in an amount equal to the least of (i) 5% of the number of shares of the Company's common stock outstanding on the first day of such fiscal year and (ii) the number of shares of the Company's common stock determined by the Company's board of directors. As of June 30, 2022, 5,879,440 shares of common stock were available for issuance under the 2021 Plan.
2021 Employee Stock Purchase Plan
In September 2021, the Company adopted the 2021 Employee Stock Purchase Plan (“2021 ESPP”) under which employees of the Company can purchase shares of the Company’s common stock commencing on such time and such dates as the board of directors of the Company determine. The 2021 ESPP initially allowed for the sale of 2,834,754 shares of common stock. The number of shares of the Company's common stock to be sold under the 2021 ESPP were and will be increased on the first day of each fiscal year beginning with the 2022 fiscal year, in an amount equal to the least of (i) 8,504,263 shares, (ii) 1% of the number of shares of the Company's common stock outstanding on the first day of such fiscal year and (ii) a number of shares of the Company's common stock determined by the Company's board of directors. The price at which stock is purchased under the 2021 ESPP is equal to 85% of the fair market value of the Company’s common stock on the lesser of either (i) the first business day of the Plan Period or (ii) the Exercise Date. As of June 30, 2022, 4,298,784 shares of common stock were available for sale under the 2021 ESPP.
Stock-Based Compensation
Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2022 and 2021, was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Cost of product revenues$885$343$1,402$1,197
Sales and marketing2,464 11 5,277 26 
Research and development6,423 194 11,568 590 
General and administrative7,020 2,021 14,579 3,778 
Total stock-based compensation expense$16,792$2,569$32,826$5,591

In total, $0.9 million and $1.4 million of stock-based compensation expense was capitalized to inventory during the manufacturing process during the three and six months ended June 30, 2022, respectively. An immaterial amount remained in inventory as of June 30, 2022.
Stock Options
A summary of stock option activity and related information for the six months ended June 30, 2022 was as follows:
Options
Weighted Average
Exercise
Price
 
Weighted Average
Remaining Contractual
Term (Years)
Outstanding at January 1, 20229,163,160$5.136.40
Granted——
Exercised(515,705)0.55
Forfeited(133,951)13.24
Expired(49,766)13.99
Outstanding at June 30, 2022
8,463,738$5.236.29
Exercisable at June 30, 2022
6,203,101$3.205.53
Vested and expected to vest at June 30, 2022
8,463,738$5.236.29
There were no stock options granted during the six months ended June 30, 2022.
As of June 30, 2022, there was approximately $10.8 million of unamortized compensation cost related to unvested stock option awards, which is expected to be recognized over a remaining weighted-average vesting period of 2.4 years, on a straight-line basis.
Restricted Stock Units
Under the 2014 and 2021 Plans, RSUs are generally subject to a 4-year vesting period, with 25% of the shares vesting one year from the vesting commencement date and quarterly thereafter over the remaining vesting term, but may be subject to other vesting conditions such as performance or market based conditions. Compensation expense is recognized ratably over the requisite service period.
A summary of RSU activity and related information for the six months ended June 30, 2022 was as follows:
Underlying SharesWeighted-average Grant Date Fair ValueAggregate Fair Value
Outstanding, January 1, 202211,264,235$14.62$164,683
Granted 7,159,7197.5053,698
Vested(1,507,394)14.80(22,309)
Forfeited(88,848)8.98(798)
Outstanding, June 30, 2022
16,827,712$11.60$195,274
As of June 30, 2022, there was approximately $160.1 million of total unrecognized compensation cost related to outstanding RSUs.
Market-Based Performance-Vesting RSUs
In September 2021, the Company issued 3,335,300 RSUs that vest based on the satisfaction of both a continued employment condition and the achievement of certain market-based performance goals. Market-based performance-vesting RSUs vest upon the achievement of certain stock price performance over a performance period. There are seven stock price targets which can be achieved over the performance period and are based on an average closing price of the Company’s common stock.
Market-based performance-vesting RSU activity for the six months ended June 30, 2022 was as follows:
Underlying SharesWeighted-average Grant Date Fair ValueAggregate Fair Value
Outstanding, January 1, 2022$3,335,300 $12.82 $42,759 
Granted———
Vested———
Forfeited———
Outstanding, June 30, 2022$3,335,300 $12.82 42,759
Operational-Based Performance-Vesting RSUs
In September 2021, the Company issued 1,597,272 operational-based performance-vesting RSUs that vest based on the satisfaction of both a continued employment condition and the achievement of certain performance goals including meeting certain annual revenue targets and product development milestones.
The grant date fair value of operational-based performance-vesting RSUs was estimated based on the fair value of the Company’s common stock on the date of grant. Compensation costs are recorded when achievement of the performance goals is determined to be probable.

Operations-based performance-vesting RSU activity for the six months ended June 30, 2022 was as follows:

Underlying SharesWeighted-average Grant Date Fair ValueAggregate Fair Value
Outstanding, January 1, 20211,597,272$16.00$25,556
Granted———
Vested(532,424)16.00(8,519)
Forfeited———
Outstanding, June 30, 20221,064,848$16.00$17,037